Can The UK Government Really Benefit From Blockchain?
IN DEPTH: Beyond the hype, can the government exploit Blockchain in the same way as other industries such as banking and insurance?
It can also help with fraud; for example, when someone dies, upon issuance of a death certificate, Blockchain could enable that person to be removed from voting polls, or from receiving certain benefits; while similarly, when a baby is born they can automatically be enrolled onto a benefits programme.
As well as HMRC and the Department for Work and Pensions (DWP), another huge area which could exploit Blockchain is the NHS.
Trent McConaghy, a member of the advisory group for the e-Residency team of the Government of Estonia, told Silicon that Blockchain could be used to track where ingredients from particular drugs came from, and their journey from manufacturing to usage to ensure they’re safe – or to trace where any issues have come from.
Health revolution
In another way, a Blockchain could enable health organisations to unlock patient data if consented to do so – so that, for example, someone in Moorfield’s Eye Hospital can pull up a patients’ GP record because they are part of the ‘permissioned’ Blockchain.
There is a cost-associated benefit to Blockchain too, according to Nick Meyne, enterprise architect for tax and welfare at Capgemini.
“It would cost less than the massive centralised infrastructures that handle transaction peaks and government data today,” he says.
Brian Donegan, head of operations of Fintech and digital development at the Isle of Man government, says the technology “has a direct positive impact on the balance sheet” because it removes the need for a lot of the work that is currently carried out by people. It means Blockchain could have a huge effect in the public sector, which is full of middle management.
Cryptographic technology means Blockchain is also more secure than other databases. Whereas most systems are centralised, and therefore if they are breached, hackers can gain access to a plethora of data, Blockchain works by storing data across decentralised systems, meaning that there isn’t a centralised point of vulnerability that hackers can exploit.
Blockchain security
In addition, because of the various time-stamping schemes that the technology uses, it automatically flags adjustments with a full audit trail, enabling organisations to realise if malpractice and deception was taking place.
Finally, governments can benefit from transparency, as citizens will have a clearer picture of what data the government is using, and this could in turn increase the amount of information they provide to the government.
“It has the potential to redefine the relationship between government and the citizen in terms of data sharing, transparency and trust,” Sir Walport said in his January report.
It is likely that the government would look towards using private or ‘permissioned’ blockchains, whereby the network is made up only of known participants – unlike Bitcoin which uses a public or ‘permissionless’ Blockchain.
What are the obstacles for Blockchain in government? Find out on page 3…
